Pakistan Suspends Simla Agreement, Halts Trade with India Amid Escalating Tensions

Simla Agreement : In a dramatic escalation of tensions between India and Pakistan, Islamabad announced on Thursday, April 24, 2025, the temporary suspension of the 1972 Simla Agreement, a landmark peace treaty that established the Line of Control (LOC) in Kashmir. This move, coupled with the closure of the Wagah border, suspension of trade, and restrictions on Indian airspace and visas, marks a significant setback in the already strained bilateral relations between the two nuclear-armed neighbors. The decision comes as a direct response to India’s punitive measures following the devastating Pahalgam terror attack on April 22, 2025, which claimed 26 lives, mostly tourists. Here’s a detailed look at what’s unfolding and why it matters.

Simla Agreement

Background: The Pahalgam Terror Attack and India’s Response

The catalyst for this diplomatic crisis was a brutal terrorist attack in Pahalgam, a picturesque town in Jammu and Kashmir, where gunmen from The Resistance Front—a proxy of the Pakistan-based Lashkar-e-Taiba—opened fire on civilians, killing 26 people, including newlyweds and a naval officer. India swiftly pointed to cross-border linkages, blaming Pakistan for supporting terrorism. On April 23, 2025, India’s Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, rolled out a series of hard-hitting measures, including:

  • Suspension of the 1960 Indus Waters Treaty, which governs the sharing of river waters critical to Pakistan’s agriculture and economy.
  • Closure of the Attari-Wagah border, halting all cross-border trade and movement.
  • Expulsion of Pakistani military advisors from New Delhi, declaring them persona non grata.
  • Suspension of the SAARC Visa Exemption Scheme (SVES) for Pakistani nationals, with a 48-hour deadline for those in India to leave.

These actions left Islamabad reeling, prompting Pakistan’s National Security Committee (NSC), chaired by Prime Minister Shehbaz Sharif, to convene an emergency meeting to formulate a counter-response.

Pakistan’s Retaliation: Suspending the Simla Agreement

The Simla Agreement, signed on July 2, 1972, by Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto, was a cornerstone of India-Pakistan relations. It established the LOC in Kashmir, mandated peaceful resolution of disputes, and facilitated the return of prisoners and territories after the 1971 war that led to Bangladesh’s creation. By suspending this agreement, Pakistan has signaled a willingness to challenge the diplomatic framework that has governed bilateral ties for over five decades.

In a strongly worded statement, Pakistan’s Prime Minister’s Office declared that it would hold “all bilateral agreements, including but not limited to the Simla Agreement, in abeyance” until India reverses its “reckless behavior.” The statement accused India of violating international law and UN resolutions on Kashmir, alleging that New Delhi’s actions, such as suspending the Indus Waters Treaty, constitute an existential threat to Pakistan’s 240 million citizens. Pakistan labeled any attempt to stop or divert Indus River waters as an “act of war,” vowing a response “across the complete spectrum of national power.”

Additional Measures by Pakistan

Beyond suspending the Simla Agreement, Pakistan announced a slew of retaliatory steps:

  • Closure of the Wagah Border: Effective immediately, all cross-border transit through this iconic checkpoint has been halted. Those with valid endorsements may return by April 30, 2025, but no new crossings are permitted.
  • Trade Suspension: All trade with India, already limited, has been completely stopped, further straining economic ties.
  • Airspace Restrictions: Pakistan has closed its airspace to Indian-owned or operated airlines, disrupting regional connectivity.
  • Visa Cancellations: All SVES visas issued to Indian nationals have been canceled, except for Sikh pilgrims visiting religious sites. Indian nationals in Pakistan under SVES must leave within 48 hours.
  • Expulsion of Indian Advisors: Indian defense, naval, and air advisors in Islamabad have been declared persona non grata and ordered to leave immediately.

Why This Matters: A Dangerous Precedent

The suspension of the Simla Agreement is not just a symbolic gesture; it raises serious questions about the future of the LOC, which has served as the de facto boundary in Kashmir. Without the agreement’s framework, the risk of military escalation along the volatile border increases, especially given Pakistan’s hints at advancing armed forces along the LOC. The 1999 Kargil War, triggered by Pakistan’s violation of the Simla Agreement, serves as a stark reminder of the potential consequences.

Moreover, Pakistan’s threat to treat disruptions to the Indus River as an act of war underscores the high stakes involved. The Indus Waters Treaty, brokered by the World Bank, has been a rare example of cooperation between the two nations, surviving multiple conflicts. Its suspension by India, followed by Pakistan’s fiery rhetoric, brings the region closer to a water-related flashpoint, with implications for millions of lives and regional stability.

Global Implications and the Road Ahead

The international community is watching closely, with world leaders from the US, Russia, China, and the EU condemning the Pahalgam attack while urging restraint. The closure of borders, suspension of trade, and restrictions on movement will likely disrupt regional economies and travel, while the diplomatic fallout could hinder cooperation on issues like climate change and counterterrorism.

For now, both nations appear locked in a cycle of tit-for-tat measures, with Pakistan’s leaders warning against any Indian military action, possibly fearing a repeat of the 2019 Balakot airstrike. India, meanwhile, remains resolute, with Prime Minister Modi vowing to pursue the perpetrators “to the ends of the earth.”

As tensions simmer, the suspension of the Simla Agreement and the halting of trade mark a low point in India-Pakistan relations. The coming days will be critical in determining whether diplomacy can prevail or if the region is headed toward further confrontation.


Frequently Asked Questions (FAQs)

Q1: What is the Simla Agreement, and why is it important?
A: The Simla Agreement, signed in 1972, is a peace treaty between India and Pakistan that established the Line of Control (LOC) in Kashmir and committed both nations to resolve disputes peacefully. It’s crucial because it provides a diplomatic framework for managing tensions and maintaining stability in a volatile region.

Q2: Why did Pakistan suspend the Simla Agreement?
A: Pakistan suspended the Simla Agreement in retaliation to India’s measures after the April 22, 2025, Pahalgam terror attack, which killed 26 people. India suspended the Indus Waters Treaty, closed the Attari-Wagah border, and expelled Pakistani officials, prompting Pakistan to counter with its own actions.

Q3: What does the suspension of the Simla Agreement mean for the LOC?
A: Suspending the Simla Agreement challenges the legal basis of the LOC, potentially increasing the risk of military escalation along the Kashmir border, as the agreement’s framework for peaceful dispute resolution is no longer in effect.

Q4: How will the closure of the Wagah border affect trade?
A: The closure of the Wagah border halts all cross-border trade between India and Pakistan, which, though limited, includes goods like agricultural products and cement. This will disrupt local economies and supply chains on both sides.

Q5: Why is the Indus Waters Treaty a point of contention?
A: The Indus Waters Treaty governs the sharing of river waters vital to Pakistan’s agriculture and economy. India’s suspension of the treaty, followed by Pakistan’s claim that any water diversion is an “act of war,” has escalated tensions, given the treaty’s importance to millions of livelihoods.

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